TSMC says AI demand is “countless” after document This autumn earnings

TSMC posted internet revenue of NT$505.7 billion (about $16 billion) for the quarter, up 35 % yr over yr and above analyst expectations. Income hit $33.7 billion, a 25.5 % enhance from the identical interval final yr. The corporate expects almost 30 % income development in 2026 and plans to spend between $52 billion and $56 billion on capital expenditures this yr, up from $40.9 billion in 2025.

Checking with the purchasers’ prospects

Wei’s optimism stands in distinction to months of hypothesis about whether or not the AI business is in a bubble. In November, Google CEO Sundar Pichai warned of “irrationality” within the AI market and stated no firm can be immune if a possible bubble bursts. OpenAI’s Sam Altman acknowledged in August that traders are “overexcited” and that “somebody” will lose a “phenomenal sum of money.”

However TSMC, which manufactures the chips that energy the AI growth, is betting the alternative means, with Wei telling analysts he spoke on to cloud suppliers to confirm that demand is actual earlier than committing to the spending enhance.

“I need to be sure that my prospects’ demand are actual. So I talked to these cloud service suppliers, all of them,” Wei stated. “The reply is that I’m fairly happy with the reply. Really, they present me the proof that the AI actually helps their enterprise.”

The earnings report landed the identical day the US and Taiwan finalized a commerce settlement that cuts tariffs on Taiwanese items to fifteen %, down from 20 %. The deal commits Taiwanese corporations to $250 billion in direct US funding, and TSMC is accelerating the growth of its Arizona chip fabrication services to match.